Banks are well positioned to withstand the tough economic challenges occasioned by the Covid-19 scourge, a new report says. The report shows that the banking industry’s assets stood at Sh4.8 trillion by the end of 2019, out of which Sh2.7 trillion was in loans and advances. Bank’s total assets have been growing at a modest rate of 9.2 per cent, mainly driven by an increase in credit extended to the private sector, although they have not hit the pre-2017 double-digit growth figures. However, non-performing loans remained high and took up double-digits as a share of loans, standing at 12.6 per cent during the same period. Large banks witnessed the highest growth in assets in 2019 followed by small ones, while medium-sized lenders saw muted growth.

Source: Daily Nation August 27, 2020 05:37 UTC